"While strong growth in lending and deposits is positive, it does have a ripple effect in terms of increasing operational costs," Mr Goudswaard said.

Despite the housing market's downward trajectory in most mainland capital cities, CUA's loans under management grew to $13.26 billion, an increase of 7.2 per cent over the half - three times the system rate.

He contrasted CUA's structure with that of the ASX-listed big banks hauled across the coals for various misdemeanours at the financial services royal commission.

"In the context of the royal commission and the cultural behaviours it highlighted, Australians are clearly looking for an alternative that empowers them by placing the control of their finances back in their hands.

"CUA is owned by our members, not shareholders, so we put the interests of our members at the heart of everything we do."